This report describes the second phase of the implementation of the Concept Demonstrator experimental test-bed system containing sensors and processing hardware distributed throughout the structure, which uses multi-agent algorithms to characterize impacts and determine a suitable response to these impacts. This report expands and adds to the report of the first phase implementation. The current status of the system hardware is that all 192 physical cells (32 on each of the 6 hexagonal prism faces) have been constructed, although only four of these presently contain data-acquisition sub-modules to allow them to acquire sensor data. Impact detection.. location and severity have been successfully demonstrated. The software modules for simulating cells and controlling the test-bed are fully operational. although additional functionality will be added over time. The visualization workstation displays additional diagnostic information about the array of cells (both real and simulated) and additional damage information. Local agent algorithms have been developed that demonstrate emergent behavior of the complex multi-agent system, through the formation of impact damage boundaries and impact networks. The system has been shown to operate well for multiple impacts. and to demonstrate robust reconfiguration in the presence of damage to numbers of cells.